Unleaded petrol was averaging 136.4 cents per litre across much of NSW, while diesel was a cent cheaper. The NRMA believes prices could drop below 125 cents.

According to the government’s FuelCheck website, across western NSW in the lead up to Christmas unleaded prices varied from a low of 126. 7 at multiple outlets at Lithgow, to highs of 140.4 at the Coles Express outlets at Dubbo and Bathurst.

Diesel was just as varied, with the cheapest prices found at Metro Outlets at Orange and Lucknow, while an independent outlet at Eglinton, near Bathurst, was listed as charging 165 cents per litre.

NRMA Regional Corporate Affairs Advisor Helen Machalias advised people to shop around, not just in their own town, but also find the cheapest fuel on their journey to save.

“Fuel prices will remain stable between Christmas and New Year, with a drop expected in the New Year,”  Ms Machalias said.

“Motorists can save up to 10c a litre by shopping around. Motorists are encouraged to use the NRMA app to locate the cheapest fuel in their area.

“Price variation reflects the demand within the local market, as well as competition between fuel retailers, for example how many independents are operating.”

There may be more good news for motorists with the federal government announcing it will give more powers to the Australian Competition and Consumer Commission.

The ACCC will now produce more in-depth quarterly reports, analysing issues relating to the supply of petroleum products.

Ms Machalias said the move was a welcome one.

“Many motorists are concerned by petrol price increases at this time of year, and greater transparency in relation to the drivers behind fuel prices is essential.”

Using the NSW government’s FuelCheck website or downloading the myNRMA app will allow motorists to check fuel prices at stations right across the state.